KUALA LUMPUR, Sept 8, 2025 — Malayan Banking Bhd (Maybank) has successfully issued RM3 billion in Tier 2 Subordinated Sukuk Murabahah under its extended RM30 billion Sukuk programme, bolstering its capital base and enhancing financial flexibility.
Key Highlights of the Issuance
- Series 013 Sukuk carries a 15-year tenure, with a non-callable period of 10 years, becoming callable from 7 September 2035 onwards and maturing on 7 September 2040. Buyers will receive semi-annual profit payments, with a yield-to-maturity of 3.92% per annum.
- The sukuk issuance is Shariah-compliant and will be utilised for approved Islamic financial investments, funding of Islamic operations across Maybank’s subsidiaries and international branches, and supporting other Shariah-aligned initiatives.
- Importantly, the sukuk qualifies as Tier 2 capital within the Bank Negara Malaysia Capital Adequacy Framework, boosting Maybank’s capital adequacy ratios. The issuance earned a “AA1 / Stable” rating from RAM Rating Services.
- This issuance completes the post-upsize rollout under the bank’s expanded RM30 billion Sukuk programme (up from RM10 billion in 2021), enabling access to a larger capital pool.
Capital Strategy and Market Implications
Maybank’s sizeable sukuk issuance underscores its strategic push into Islamic capital markets to strengthen its financial resilience. By expanding its Tier 2 capital—responsible for absorbing shocks under regulatory norms—the bank can underpin growth while preserving regulatory leeway for dividend distribution and credit expansion.
Analysts anticipate that such capital augmentation may create a positive market response, as sukuk issuances often signal corporate strength, especially when backed by credible ratings and Shariah-compliant frameworks.
Sector Momentum
Maybank’s sukuk deal is part of its wider leadership in the debt and Islamic finance arena. Recent accolades include topping all four categories at the 22nd RAM League Awards 2025 and orchestrating high-profile transactions such as Johor Plantations’ RM3 billion sustainability-linked sukuk and Keyfield International’s debut RM1 billion sukuk wakalah programme.
